The performance of real estate private equity funds in South Africa

Abstract

Using a sample of seven real estate private equity funds in South Africa, we firstly investigate the actual performance of these funds relative to their targeted returns at inception, and the performance of the market over the holding period. Results indicate that South Africa’s REPE funds were able to meet and surpass their targeted returns, including those that were promised to prospective clients during the prospectus stages. Furthermore, REPE performed above market expectations and were able to exceed market returns.